Burger King in talks to buy Tim Hortons and relocate head office

Reports suggest the burger giant is looking to relocate its head office

Head office relocation would allow Burger King to secure a lower corporate tax rate

MIAMI, Florida - Burger King has entered into talks to buy Tim Hortons, the Canadian coffee and doughnut chain in a move to relocate the American burger giant's headquarters outside the United States, according to reports by Bloomberg.

A source familiar with the deal said that it would be structured as a tax inversion, a move by which a company moves its head office overseas to a country with a lower corporate tax rate, while maintaining all material operation in their former home market.

The deal is not yet complete, and it is unknown when an official announcement might be made.

Recent attempts by companies for tax inversion deals have drawn the attention of some politicians, including US President Barack Obama, who criticised a "herd mentality" by companies seeking such deals.

Burger King is the second-largest burger chain in the world after McDonald's, employing more than 34,000 people directly around the world with 13,000 outlets, 99% of which are privately owned and 66% of which are located in the United States.

Tim Hortons has 4,300 outlets across the world, many of which are in its Canadian home market, where the brand is the largest food service operator.